Mortgage Refinance
If you are in debt refinancing your existing mortgage or home loan may be an option for you.
A mortgage refinance utilises the existing equity available in your property to repay other high interest debts. It may allow you to package your current monthly repayments from all of your debts into one convenient repayment. This means you end up paying less each month than what you currently are.
You may be able to get assistance you even if you fit into one or more of the following categories:
- Short-term employed or not employed long enough
- Irregular income
- Self employed
- Government Allowance (including New Start)
- Previously bankrupt
- Rejected by another lender
- Pensioner
- Adverse credit history
- Existing loan arrears or defaults
- Limited savings history
How does a mortgage refinance work?
A mortgage refinance is the process of applying for a new loan on your current property and using this new loan to pay out your current mortgage and any other debt you may have.
Benefits of mortgage refinancing
The benefits of mortgage refinancing may include:
- paying off your mortgage faster
- extending the length of your mortgage and thereby reducing the amount you repay each month.
- a lower interest rate or more favourable terms than your current mortgage
- consolidating your credit card and personal loan debts into your mortgage to take advantage of the lower mortgage interest rate
- drawing additional funds against your property for expenses of a personal nature
Consolidate your debt through a mortgage refinance
A mortgage refinance is often used to consolidate credit card and personal loan debt. This is because a mortgage loan is usually available at a substantially lower interest rate than the interest rate you pay on your credit cards or personal loans.
By consolidating all your debts under your mortgage you will only have to make a single payment instead of making multiple payments each month.
In addition, you may end up paying less each month than you are currently. This helps many people manage their finances more effectively.
When applying for mortgage refinancing
When applying for mortgage loan make sure:
· You are fully informed
· Your repayments have been reduced - not increased
· There are no hidden fees or costs
· You have achieved control over all your debts
· There is a real long term benefit to you
